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Mad Money

News/Business. Money manager Jim Cramer discusses Wall Street investments.

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Cramer 8, Jim 8, New York 5, Cisco 5, Dell 4, Florida 4, Us 4, Virginia 3, Wendy 3, Laurie 3, Beta 3, Georgia 3, America 3, At&t 3, Oracle 2, California 2, Arby 2, Actonel 2, Pennsylvania 2, South Carolina 2,
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  CNBC    Mad Money    News/Business. Money manager Jim  
   Cramer discusses Wall Street investments.  

    August 10, 2009
    11:00 - 12:00am EDT  

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i'm jim cramer and welcome to my world. to my world. you need to get in the game. they know nothing! i wish i could say there is a bull market somewhere. "mad money" you can't afford to miss it. hey i'm cramer. welcome to "mad money." welcome to cramerica. a lot of people want to make friends. i'm not interested. my job isn't just to educate but to entertain you so call me. at 1-800-743-cnbc. this is not a market that makes sense. from what's known as the top down. it makes no sense if you listen to the guys who have the big picture, who pore over the gross domestic product numbers, the
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employment numbers, the national retail sales numbers. they think our economy and therefore our stock market are simply pumped up, steroidal affairs or maybe just supplements like manny ramirez, david ortiz. nobel prize winner and new york times columnist paul krugman who this morning, shocking, took the great depression two off the table. we did that 2500 dow points ago for the record. but said that, well, all that's happening is we're just getting worse. more slowly. krugman, like so many others i hearsay that it's all government spending that's providing any of the rally, any of the economy's pumped up and it's providing, well, without it, let's just say we'd be post steroidal weaklings. that's right. they think that without all this federal money what would happen?
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turn it off. we deflate faster than a popped helium balloon. are things getting worse really? are things really getting worse like that slowly? is that what's happened? does that view really hold water given the stock market's rally? is the rally -- is the economy getting better? not declining less quickly? of course the krugman thesis would justify today's 32-point decline in the dow and the decline in the s&p but i'm not buying it one bit. i think things are getting better straight out. with or without the government. but you only know it if you look not top down but bottoms up. meaning only if you got your fingers dirty. listening to the conference calls, reading the research, going through the press releases line by line. getting on the website to see individual companies' presentations. you have to google the executives, the ceos, find out
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what they're saying, where they are saying it, including on this show. and you will reach a very different conclusion than what the big think guys will give you. if you listen to the top down dons and i mean academic not mafia, because tony soprano was always a bottoms up guy, you'll hear the negative litany, commercial real estate crash coming, over extended consumer except when she's saving too much, government spending the only game in town. da probes rackets. i think all the people who are fretting about this stuff are simply too far removed from what's actually happening. that's the problem with focusing on the macro over the micro. these academics and muckety-mucks, they're like general westmoreland not talking to the grunts in vietnam. shatoing it up as their men get cut down by the thousands.
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as there's interlocking machine gun fire, it's worse. there could be rumsfeld. i'm not a top down guy at all. i like to do what's bottoms up analysis. i make judgments from the trenches where you get a more accurate picture. we're not getting worse more slowly. we're actually getting better. maybe much better. and it isn't all government spending. that's ridiculous. most of the stimulus hasn't even hit yet in this country. the government's not buying all those handbags from coach. it's not spending money to buy jeans from true religion or all the stuff at anthropology or hot selling boots. the government isn't shopping at the new jc penney's store in manhattan. i think when these retailers report this week you'll hear what i've been saying. inventories are lean. business is better than expected. back-to-school season is on. the government isn't buying all these apple ipods or iphones or
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any of the other smart phones. motorola is at seven because of demand, not from congress. cisco didn't just make up that it saw the first quarter spurt in a year. it didn't just pump up the stock. the turn is real. you get rallies now, alcoa, international paper, getting stronger on their own volition. steel price increases aren't all from china. that's ridiculous. while oil is up, well, let's say too much since the bottom, it didn't deserve to be at 40 anymore than it deserved to be at 140 because we were never as weak as a 40 indicates and never as strong as 140. ford's not at seven because of cash for clunkers. it was there before that. because the turn had already happened. sure, cash for clunkers is a little like throwing a cinder on an already burning campfire but
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the fire was already burning. you can't explain the strength away. the banks haven't rallied 30% or 40% or 50% for no reason. they've gone to sturdy earners. i don't think anything on the horizon including the so-called pending collapse of commercial real estate i keep hearing about can sink this. before banks can be taken down by commercial real estate they'll be parcelled out by the fdic to the winners. we know which ones those are, talking about first niagara, first merit. you know that. if everything were propped up by the government how come state street only dropped a buck and a half today when it said it needed more capital to cover subprime loss claims? it could issue 10 million shares right now. pay them. look, if you take the top down macro view you can't even see the strength. so what's the real bottoms up picture? the consumer's not strapped, just frugal. not a problem. kind of what we always wanted. commercial real estate is
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viewable, containable. the new car bill? slightly borrowed because of cash for clunkers, was returning to a lower level but with somewhat normal demand that exceeds inventory even without the program. with all that i have to ask, why shouldn't the market have gone up? the big move higher may be stalling out right now but it's always been justified by a getting better than we expected attitude which is much rosier than getting worse less slowly nonsense that you hear from the top down guys, the ivory tower academics and, yes, the media. here's the bottom line. the only way to make sense of this market is by looking at it bottoms up not top down. remember, if you listen to the top down guys you are thrilled that you missed the 45% rally off the bottom in march because that rally was way too risky to be involved in. if you listen to the companies though you would feel like a total chump if you sat it out. as you let the generals tell you what you saw instead of using your own eyes and ears. and if you listen to me, you can sell tomorrow.
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sell, sell, sell. and lock in some fabulous gains. ♪ hallelujah >> then go ahead and join the nay sayers who say the move is almost over. that's the virtue of catching the big move. you can now denounce the move all you want just like those who hated it from dow 6500 but the difference is you've got money to take off the table. intelligentia? they're just trying to put food on the table. let's go to sue in california. >> caller: hey, jim, got a bay area boo-ya for you here. >> holy cow. commercial real estate collapse boo-ya. that's what everyone says. i don't believe it. go ahead. >> caller: before i start my question i want to say i read your book and i joined actual alerts and i want to thank you for helping me make some mad money. >> terrific. that's the service where i send out what i'm doing for my charitable trust before i take action. thank you for the kind words. how can i help? >> caller: my question is about crox. now that they have a new ceo, the previous one being a
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definite candidate for your wall of shame do you think it's a buy? i know adults are over the fad for the most part but kids seem to still love them and professionals like cooks and nurses that have to be on their feet all day wear them, too. >> when i saw what they reported, i saw that they reported a less than expected loss. i think it's logical to presume that things truly are getting better there. now, the stock has had a gigantic move, sue. so i can't countenance coming in after the percentage gain. i'd like to wait and see if it pulls in but i think you're absolutely right. there is a turn there. this as company left for dead. it has a business model. it has sales. i find it intriguing but i think i should have hit it last week not up here. again, thank you for the kind words on my service that i offer. kerry in florida? >> caller: boo-ya from jacksonville, jim. >> well, august 27th against the eagles, back at you.
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>> caller: all right. thanks for getting me in the game. >> my pleasure. >> caller: appreciate it. since learning how to scale in as prices go down and scale out as they rise i have two positions, jny at hun that are a hundred percent house money. should lit them ride or cash them in and buy more positions in the smart phone tsunami stock? >> hun is a dice roll. i'm tempted to take half that off the table. i think that you should take one-third of the jones apparel off the table. why not half? because that was the quarter and i really think if you play this right, if you bought the jones in the five to seven area you have a very big gain. take a third off and you're basically paying with the house's money there forward. i think west card did a great job with the quarter. so let's take half, at least a third from both but i would really prefer you to take half in
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huntsman because then you're playing with the house's money and a third from jones and you should be playing with the house's money. that's our goal always. jeff in new york? >> caller: boo-ya, jim cramer. >> boo-ya, jeff. >> caller: i want to know how about advance micro devices? >> everyone has written it off. everyone has decided that the split's not working. i think it's premature. i think the stock had a really big move, it's cooled off, but i like the new business plan. i believe in amd. i don't think it's too much to expect that stock to rally to six bucks by year end. all right. we're trying to make some sense of the market and making sense by looking at individual companies and staying on the home work there rather than the top down gdp retail sales which don't mean anything in cramerica. "mad money" will be right back. coming up, can a new name in health care write you a prescription for profits? cramer is giving one stock's debut a complete examination on "know your ideal." plus, could the turn-around in one takeout stock mean extra value for your portfolio?
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jim is serving you up a fast food giant that could l could come with a side of mad money. i think we're right at the
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call or click today. i think we're right at the beginning of an ipo landslide in this country. private equity firms have been sitting on companies they hope to take public for over a year now waiting for the market to improve enough to make it worth their while. and i think we finally reached that point even though it's the middle of august. you're going to see a flood of newly public companies but not all of these ipos will be worth getting in on.
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this week, though, there's an ipo coming that may be the model for the kind you want to buy. the kind that should actually make you money because it's private equity parent has added value while the business wasn't trading on public markets. this is a rarity. usually they wreck the value. they tell you that they improved it but they didn't. i'm talking about mdi which will trade under the symbol em, as in mary, when it comes public this wednesday of this week. it's the largest electronic medical billing system in the country so it fits perfectly into the current moment where health care costs containment has become steaming, sizzling, hot. so far this year there have been seven private equity backed ipos and all but one has gained value since coming public. that's not bad. emdeon is joined by two separate firms.
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because general atlantic is involved, you don't need to worry that they're just spinning off a gutted joke of a company in order to profit for themselves while they rob you blind. this thing is the real deal. bill porter runs general atlantic. knows how to create value. this is an instance where he makes money and you get to make money. where his partners do well and you could do well especially if the deal is priced near where it's expected. right now the plan is to offer 21.5 million shares between 13.50 and 15.50 a share which at the mid point makes it so emdeon is a $1.7 million company. look, inc. you should try to get in on this deal. ask your broker to try to get you some shares because i think it's priced very conservatively. morgan stanley, goldman sachs, ubs, and barclay's are the lead underwriters. maybe you want to do some trades with them in order to get in on the emdeon ipo. let me make one thing extremely
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clear though. if you can't get any shares on the ipo, in other words, before it opens i don't want you to chase the stock in the after market. the opportunity here is to catch this one at too low a price as it comes public. not to pay off enormously once it starts trading. emdeon isn't just a hot ipo but also is a company that makes money. we didn't have that back in 1999 and 2000 when the tech bubble occurred. tech ipos then were hot and heavy and nobody cared about the underlying business. emdeon has a comprehensive sweep of payment and processing solutions. it's the top electronic medical billing system in the country. sound like president obama? and it's got its fingers in epayment, electronic prescriptions, revenue cycle management, and data and analytics. emdeon's platform helps health care providers control administrative costs. and we all know that health care costs containment is one of the fastest growing parts of the
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health care economy. the thing i really like about emdeon and the reason i think this could be better than say all scripts which you know we like or serta which i haven't been that big a fan of though it's done well that is it addresses the entire health care revenue cycle. the competitors only help at certain points. that's why i pass the 17.50 for this one because it becomes more expensive than its compares above that. that if you pay up beyond that the other guys are cheaper so you might like them more. that's the question you always have to ask about an ipo. how much is this one worth versus others that are in the same peer group? because if you can't get under that, then you don't have a good entry point. pay more than that, you're trying to make the hard money. i say leave that for others. you can't get hurt. you know, you can't get hurt if you buy it at 17.50 or below. you could get hurt if you pay up and we believe in first do no harm in cramerica. emdeon ends up getting paid
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during each step of the process creating five or six different revenue streams every time someone interacts with the health care system and at each point it saves providers and insurance companies money. the patient arrives at the doctor's office. when the doctor checks the eligibility that's emdeon. then the doctor submits a bill to the insurance company. emdeon there is too. then the insurance company receives the bill, processes the payment and sends it back. emdeon does it. then the doctor bills the patient. there is emdeon again. finally the insurance company also has information sent to the patient. one more point where emdeon makes the system smoother and gets paid for doing it. because emdeon is at every point in the process and connected to every major system developed over the last 25 years its customers are increasingly consolidating to emdeon's platform for everything and there is still growth here because even though 80% of bills from doctors or hospitals are
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sent to insurance companies electronically only 10% to 15% come from the insurance company back to the doctor or hospital and are done electronically. big market. emdeon systems immediately saves money for customers eliminating paper claims and stopping unnecessary or abusive claims before they get into the system. again, something obama wants. and you just know that when obama eventually declares victory on health care reform, meaning when he accomplishes some cost containment and expansion of coverage i think he'll be giving emdeon a big sub rosa boost because it is the cost control player. any increased demand for cost comparison data is going to be important and anything that generates more claims like more people receiving more health care. one more unique thing about emdeon. it's actually had its value improved by general atlantic, the private equity firm that bought it from hlth at the end of 2006. since general atlantic bought the business, emdeon has made a bunch of smart acquisitions and has been able to reduce its debt by one-third since september, 2006.
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usually the private equity firms pile debt onto the company before they spit it out. not this time though. general atlantic added value to emdeon creating what looks to me like the ideal health care stock for the ideal time. it's the best in the business. it should have much better growth than other companies in the area and the area is red hot. here's the bottom line. if you can try to get in on emdeon ipo. this one coming public on wednesday so you don't have much time. 13.50 to 15.50 is a steal. 17.50s the highest i'll let you buy. i think this one works. just promise me you won't chase it in the after market. no matter what the price. extra value for your portfolio? jim is serving you up a fast food giant that could come with a side of mad money. and later, jim goes high
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voltage in an electrify fast-fire lightning round. and cramer checks his in-box on an all new "mad mail" all coming up on "mad money." when this hotel added aflac
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a day on the days that you have arthritis pain, you could end up taking 4 times the number... of pills compared to aleve. choose aleve and you could start taking fewer pills. just 2 aleve have the strength... tonight we're doing a not so blind taste test. which fast food stock has the most room to run? i would sample all the burgers and fries here but i don't want to throw up all over the expensive set. why don't we look at the fundamentals? you want a healthy stock of a healthy company if not healthy eating? then mcdonald's is the place to go especially after the great numbers announced this morning. maybe we want something a little
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more sizzling. i am starting to see a turn-around in another fast food player that i have avoided, stayed away from, because, well, it's been expensive on earnings. it didn't have much momentum and frankly it wasn't that well run. now, all of these things are starting to change. in fact, this company is finally starting to live up to a variant of its old slogan. wendy's. it's getting better here. with the stock trading at $5 and change i think wendy's/arby's group is finally worth owning because the turn is real. why do i think that? well, first of all give me some credit. i've been pretty good at recognizing turns in the fast food game. i thought cke restaurants, that's carl's jr. and hardees was a buy at 7.73 on may 22nd as a speculative turn-around and it wasn't just because of their entertaining ad campaign. that one even though hardees hasn't really turned and has always been carl's jr. is up 20% since then. and i think that was a much
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riskier call than wendy's given wendy's has a much stronger brand and cke has a ton of business in a place called california where they can no longer afford $6 juicy burgers. what makes me believe in wendy's turn around? this is a company that owns about a billion dollars worth of real estate, 629 wendy's locations where it owns the land and building. another 585 locations where it just owns the buildings and 138 arby's locations. these could become more valuable once real estate prices start going up again. a little contrary view but i think it's going to happen. given the fact that the company's market cap is just 2.3 billion the real estate piece is huge. i think the value of the wendy's brand is worth more than the 1.3 billion you're left with when you subtract out the real estate value. that's just valuation. we don't buy just on valuation. what about the actual term? on thursday wendy's reported a pretty good quarter. i've been waiting for that quarter and didn't want to jump the gun.
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i wanted to be sure that people who think the turn is here for real and the quarter was because of solid execution on sales and cost cutting. remember i was worried about those. something that should help bring the stock back into favor and restore credibility with the street after the company's first quarter earnings miss. same store sales and margins both rose nicely at wendy's and while same store sales at arby's are declining it isn't as bad as it was. comps were down 4.7% july. versus 5.8% last quarter. let's call it less bad. management said it sees significant and quick improvement in margins as sales improve across the board. i couldn't believe the stock didn't go up on this. this is a company that's increasing sales and the amount of money it makes in profit on each sale. the growth prospects at wendy's are real. the company's revamping the breakfast menu at 600 locations and across the board rollout expected in 2011. breakfast represents 22% of all quick service restaurants but at wendy's only 2.2%. i regard it as a gigantic
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long-term opportunity. it's also going international. good news given the saturation in america. it has about 170 stores in the middle east, africa, and asia it he has got planned. i know that's small but it's a start and we know from mcdonald's and yum that international is where the growth is. kitchen layout, store design, changes to the menu, execution getting better. but the aim of converting some stores into dual brand wendy's and arby's. same thing if you go to kfc and see taco bell next to it in the same complex? that improves sales and profits. it worked for yum which my charitable trust owns. i told my subscribers this weekend it could go much higher and gave it a one ranking. i feel the same way about wendy's. i think it's going to work for wendy's. both wendy's and arby's the company has been pushing value menu but the brand especially wendy's are strong.
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wendy's was ranked number one, best food, best facilities, and best overall. at least it's got as much hospitality as a fast food joint focused on selling cheap stuff you have. it just needed to start capitalizing on that fact, something that's finally happening though it's been a long time coming. wendy's best in show of my fast food panoply of mcdonald's and burger king and i think the fries are badly underrated. the bottom line, the turn in wendy's is real even if i am in the minority judging by the lethargic stock price. i think the $5 fast food stock could go much higher thanks to the move in breakfast, international growth opportunities, plans for dual branding with wendy's and arby's. it's getting better. the next big fast food stock. to make it smooth to higher
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territory. james in south carolina, james. >> caller: jim, how are you? >> all right. how are you? >> caller: boo-ya and greetings from the steamy state of south carolina. >> there you go. boo-ya right back. >> caller: argentina excluded. >> okay. >> caller: all right. increasing agricultual commodity prices are either upon us or on the immediate horizon which will ultimately affect bottom line of companies such as yum brand and penera bread. would you be a buyer of stocks in this unit? >> we want to divide the two. they're very different. yum is primarily growth from international and the international is very strong. it did have a quarter hiccup and is right back into action. i feel like panera is stalled here because the last quarter didn't have the great growth i'd like. it wasn't all positive. it's, about the roll costs, remember annualizing year over year much easier comparison. i'm not nearly as frightened about the commodity cost. panera seems like it's plateaued. i think yum can bust out because of international not domestic.
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curt in michigan, please. >> caller: boo-ya, cramer. >> boo-ya. >> caller: i got a question. >> sure. >> caller: why has cisco been slow to rebound when it has a big marketshare and a solid dividend? should i hold it or buy more? >> okay. now just so we know everyone we're not talking about cisco the computer company. this is cisco the syy kind which distributes food all over the place. the last couple quarters were not good, sir. they were not good and if you listen to the comps you'll know why. even though it has the decent dividend it has no momentum and has had real bad execution problems so i cannot get behind that stock. i just can't. now go to laurie in missouri, please. laurie. >> caller: hey, jim. >> hey, laurie. how are you? >> caller: doing great. thank you so much. i take economics at a local university and i'm starting to get 18-year-olds coming in
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excited about financial markets. >> that is terrific. they can actually go for the long ball. we can't. >> caller: i'm the person who teaches them who the "they" is in the they know nothing. i hope this year is less exciting than last year. >> yeah. we could do without the excitement. let's save that for the stadium. >> caller: all right. i would like to talk to you about last week and apply it to mcdonald's. >> okay. >> caller: first, there was an analyst downgrade which i think was like the lows home depot kind you talked about that shouldn't have made that. i think mcdonald's is a great candidate for your foreign legion. it has a good yield. a good protection from a weak dollar. what do you think? >> remember the foreign legion, that was a series i did last week about companies that were not based here because there were so many people who e-mailed me and told me they don't want
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to have companies located in the united states because they're so fearful about the united states. i don't share that. i like your mcdonald's approach from the point of view they do a lot of business overseas but they're still based in america. i think mcdonald's is good. you're absolutely right about that upgrade downgrade. that is exactly like home depot or lowe's. it's a valuation call. i'm thinking that call was not a lot of value added. all right. we nailed cke. i am telling you that wendy's orders, this stock is next. people are overlooking the turn entirely. i'm a believer in wendy's. i'm a believer in fast food. stay with cramer. try 20 keep up with cramer as he keeps up your calls in an all new lightning round. i'm racing cross country in this small sidecar,
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it is time. time for the lightning round. i tell you whether to buy, buy, buy or sell, sell, sell. i don't know the callers or stock prices ahead of time. it's on the fly. if you hear this sound and then the lightning round is over. are you ready? it is time for the lightning round. sharon in virginia. >> caller: here's a big smoochy boo-ya for you because you're so cute. >> holy cow. virginia is for lovers and stock guys. >> caller: amen. hey, jim. thanks for all that you do. >> thank you. >> caller: because of you i'm trading responsibly and making mad money.
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>> that's what we want. i mean, you remember, trading is not a sin. taking profits is good. buy and hold is bad. that's the actual model of this show. go ahead. >> caller: in light of obama's visit to indiana what do you think of nava star and eb and atv? >> i think that -- atd or which one was that? the second one? i didn't get the second one. i think the world of navistar. i think it's terrific. i believe the cycle is going to come back. i think this is a 2010 story though not 2009. sal in new york? >> caller: jim. >> sal. >> caller: very special staten island, new york boo-ya! >> holy cow. high spirits. always a high spirited play. glad to have you on the show. i don't just cut through there on my way to jersey. i stop. what's up? >> caller: yahoo.
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street is over penalizing this one in my opinion. what do you think? >> i think some of the problem is with the executive i really respect but she set the bar so high she could only disappoint us. she talked about getting boat loads of cash up front. i agree at a certain price it's good but a lot of the takeover premium has been taken out and i don't know about the earnings. i'm going to give you a don't buy. i was expecting more myself and was a little disappointed. how about robert in florida? >> caller: hey, this is rob. what do you think of coin star cstr? >> everybody likes it. this is a coin casing company. kind of a monopoly. i don't know of anybody else who does it. there was a good article about it last week, somebody saying, well there are other companies i think that are jealous of coinstar but i think the quarter is there, the year is there. i like the stock. joe in georgia? joe? >> caller: hey, big boo-ya from evans, georgia. >> good to have you, peach man. >> caller: how you doing? >> not bad. how about you?
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>> caller: good, good. i was calling about united >> a monster move off the bottom when they did the gigantic secondary. nobody believed it. the ceo delivered. we like him. however, at these prices i'd much rather be in new corps. i would drop out of letter "x" and buy new corps. sam in colorado? sam? >> caller: big mile high boo-ya to you, jim. >> haven't had a mile high boo-ya in a long time. i was going to give you a -- i could give you a buff boo-ya. >> or a rams boo-ya. >> true. absolutely. >> caller: hey, thanks for the book "real money." i enjoyed it. >> thank you very much. now in paperback. pretty good sales last week. go ahead. >> caller: m corps as a recovery play? >> i'm glad you put it at that. it's a wire electronics company, actual hard electronics company.
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if you had not portrayed it as an industrial rebound stock i would have to say no, be careful but if you're going to put it that way as being a rebound on 2010 earnings i like the call. how about john in virginia? >> caller: hey, jim. how you doing? >> not bad. >> caller: i want to give you a blue ridge parkway boo-ya from the mountains of south virginia. >> beautiful. vacation paradise boo-ya. >> caller: my stock is hbi. >> they're doing better than i thought they would. the stock was down a dollar today. it's a little expensive. i think it's a little expensive because i do not believe you should be able to pay a premium multiple for a company that does a very basic commodity business. i am going to say don't buy. there are others that are better including by the way bf corps. they don't do underwear anymore. they used to and got rid of the business. i had some in my charitable trust. i still do. as it got higher i let some go. robin in texas?
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>> caller: jimbo, boo-ya from houston. i'm calling about grand piera. i bought in at 3.30 and wond fer i should buy more. >> no. we have so many high quality players, these probably don't attract you but they are better buys, terrific. by the way i think it was on "squawk on the street" this morning or "continental resources" is another one i prefer to yours. i give you a don't buy completely on that. doug in florida. >> caller: hey, cramer, big gator boo-ya from ocala. >> whoa, man. horse country. what's up? send darren down there instead of saratoga. what's going on? >> caller: take a look into your digital enhanced crystal ball and tell us what you see for oracle. >> i'm looking. i'm liking. oracle is good. having a good quarter. i think the sun micro buy will be great for them. i would like to be a buyer here. i think things are good there.
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richard in georgia? >> caller: cramer. >> hey, hey. >> caller: a big check your rear view mirror tomahawk chopping boo-ya to you. >> that's a mouthful boo-ya. how about the trade boo-ya? >> caller: not in atlanta anymore. what's going on with cy? >> it's still here. it's a monster move but at the heart of the internet tsunami and i would be a buyer. pull the trigger and i think you won't regret it. rogers is a friend of the show and a money maker. still going. steven in florida? >> caller: boo-ya from florida state university. how you doing? >> go noles! how are you? >> caller: i have a question about it. do you see the stock going anywhere? >> dell, i think dell is a little stall here. it wasn't a good quarter. almost everybody else had a good quarter except dell but you know what? it's a rising tide. it's going to lift all boats. i think you only have a couple points left in dell.
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i tell you, i don't favor here. there are too many other great tech plays. look at cisco. i own that for my charitable trust. the stock has sold at 22. i'd rather be in that. john in pennsylvania? >> caller: hey, big, big, big boo-ya from pennsylvania. >> i've not been there. it's a place i have not been. what's up? >> caller: just south of corning, new york. >> a southern tier man. good to have you. >> caller: it is gorgeous here, jim. we'd love to have you here. >> thank you very much. >> caller: anyway, sir, my two-part question is, what do you think the eagles are going to do this year and what do you think of the company pc. >> one is harder and one is easier. eagles, no problem. i was with sean mcdermott and went to practice, brian westbrook, training camp is key. i think the eagles go all the way this year, going to do it.
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thompson creek, prices are coming back up but that stock has moved well in advance. i'd rather put my money on donovan mcnabb and put my money on the lightning round!
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"mad mail" i spent a lot of time on this and fannie mae today. it's difficult to figure out what will ultimately accrue to common stock shareholders. these companies were bankrupt and got a huge amount of money from the government and in the pecking order of things, the com stock is low. they were skeptical about fanny and freddie. if i owned freddie, it is push
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speculation. we don't know how much turn there is on the common stock. here's one from jeff -- jeff, not at all. it's very, very important. if you asked goldman sachs they would tell you managing risk is the number one thing but he's running a gigantic broker house and has lots of exposure. on one of my tear tabl trusts we spend a huge amount of time thinking about beta. at my hedge fund we think about beta. we don't want to be up 4% when the market was up 1% meaning we're taking up too much risk.
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we like the natural gas and mining companies. if you have too much exposure to those you won't sleep. so beta is probably the most important thing i think about. i've got to tell you, i think we could be up 40 and down 40 if i didn't think about it, and that's not the way you run charitable monies. here's one from jim -- scale out, ed. as the stocks go higher, you take it off the table. you have accidently high yields when you go back in. i don't care if you have big gains and you keep them for the dividend. it's irresponsible to turn a gain into a loss regardless of the dividend. you got to take something off the table. here's one from james -- i'm
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not a believer. i think they did an unbelievable job cleaning up schering-plough and getting it ready. i think the fat is out. there's going to be some duplications. but i'll say this. i think there are some good drug stocks out there but not merck. only you'll have is cost cuts and consolidations and that's not enough for me to pull the trigger. at your chevy dealer,
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there's always a bull market somewhere and i'll find it for you right here at "mad money." i'm jim cram over and i'll see you tomorrow! to stay on top of my game after 50, i switched to a complete multivitamin with more. only one a day men's 50+ advantage... has gingko for memory and concentration.